Forex news from the European morning session - 18 December 2019
Headlines:
- ECB's Coeure: Lowering inflation target would be wrong
- Eurozone November final CPI +1.0% vs +1.0% y/y prelim
- Japanese government upgrades its growth forecast for the next fiscal year
- von der Leyen: Cliff-edge Brexit will harm UK more than it would the EU
- UK November CPI +1.5% vs +1.4% y/y expected
- ECB's Lagarde didn't say much earlier but just take note of her sole policy comment
- Germany December Ifo business climate index 96.3 vs 95.5 expected
- China foreign ministry says hopes that US will do more to establish mutual trust
- SNB's Jordan: No further rate cut needed at the moment
- ECB's Visco urges end to secrecy over policy votes
Markets:
- CAD leads, GBP lags on the day
- European equities mixed; E-minis up flat
- US 10-year yields up 0.4 bps to 1.884%
- Gold flat at $1,475.90
- WTI down 0.4% to $60.68
- Bitcoin down 0.6% to $6,579
There wasn't much notable headlines on the day as markets kept more steady and mixed overall during the European session.
The pound stays a little pressured with price action seen more choppy with cable largely pivoting around the 1.3100 handle for the most part.
UK inflation kept below the BOE target of 2% going into tomorrow's policy meeting and that isn't helping to give the pound much of a steady footing in the continued drop this week.
The euro is also on the back foot a little as EUR/USD struggles to find a move back above the 100-hour moving average @ 1.1143. Large expiries at 1.1140-50 are also helping to limit gains ahead of North American trading.
The rest of the major currencies bloc are doing little as trading ranges remain narrow amid a mixed mood across asset classes so far today.
US futures are keeping more flat while European equities are mixed with mild movements. Bond yields are also barely changed, offering little for market participants to work with.
Looking ahead, it's all about the ebb and flow still as markets try to find some form of direction towards the end of the year. The holiday season is also coming up soon so that's something to consider as traders may be trimming positions already during the week.
